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The Volvo Way
                            Building a new vision
                            and cohesive culture




                            Charlie Nordblom
                            Senior Vice President Volvo Group
                            Strategic Internal Communications




AB Volvo
AA 13200, VGHQ, ChN
                      The Volvo Way
1 2012-03-29
The challenges
                       • Re-design corporate culture
                       • Remove old vision and wanted
                         position


                       • Take “Volvo Way” approach when
                         designing new vision & mission
                       • Prepare transition for new CEO




                            Charting the course
AB Volvo
AA 13200, VGHQ, ChN
                      The Volvo Way
2 2012-03-29
Recipe for success
                      “The Volvo Way shows what we stand for and
                      aspire to be in the future. It lays the foundation
                      for developing the Volvo Group into the world’s
                      leading provider of commercial transport
                      solutions. It is a recipe for success in which we
                      strongly believe. It expresses the culture,
                      behaviors and values shared across the Volvo
                      Group.”
                                     What we stand for
                                                         The Volvo Way




AB Volvo
AA 13200, VGHQ, ChN
                          The Volvo Way
3 2012-03-29
Shared values
                      “Our culture is how we work together with
                      energy, passion and respect for the individual.
                      It is about involvement, open dialogue and
                      feedback. It is about teamwork, diversity, and
                      leadership. It is how we build trust, focus on
                      customers and drive change.”
                                        Open dialogue Way
                                                  The Volvo




AB Volvo
AA 13200, VGHQ, ChN
                            The Volvo Way
4 2012-03-29
Cohesive culture
                      “We endeavor to create a cohesive culture
                      throughout all Volvo Group companies. This
                      is a culture of enablement, based on global
                      principles and shared values outlined in The
                      Volvo Way. Active development towards
                      realizing The Volvo Way spirit and culture is
                      the backbone of all operations.”

                                                     The Volvo Way

                                       Cohesive culture


AB Volvo
AA 13200, VGHQ, ChN
                       The Volvo Way
5 2012-03-29
Unique for Volvo Group
Setting the direction
                        “To be involved and empowered in set-
                        ting the direction means that we take
                        individual responsibility and ownership
                        for decisions. This employee engagement
                        results in a strong sense of commitment
                        to meet agreed objectives and goals. All
                        of us feel accountable for driving change
                        and building the future. Only engaged
                        employees can deliver excellence.”

                                                   The Volvo Way




AB Volvo
AA 13200, VGHQ, ChN
                      The Volvo Way
6 2012-03-29
AB Volvo
950, VGHQ, ChN
                 The Volvo Way
7 2012-03-29
Companies get lost too




AB Volvo
950, VGHQ, ChN
                 The Volvo Way
8 2012-03-29
”We are
 responsible…”
 Robert Wood Johnson
AB Volvo
950, VGHQ, ChN
                       The Volvo Way
9 2012-03-29
Clear and compelling
                         Vision should outline:
                         • Who are we? Why do we exist?
                         • What do we want to become?
                         • What is unique about our way of
                           doing things?


                         • Review mission statement
                         • Validate draft wanted position




                           Vision of the future
AB Volvo
AA 13200 VGHQ, ChN
                     The Volvo Way
10 2012-03-29
Next generation leaders
                             • Reach out to high-potentials and
                               future leaders
                             • Focus on new home markets and
                               old




                                      Future leaders

AB Volvo
AA 13200, VGHQ, ChN
                      The Volvo Way
11 2012-03-29
156 young leaders in seven countries




AB Volvo
AA 13200, VGHQ, ChN
                      The Volvo Way
12 2012-03-29
Next generation leaders
                             • Reach out to high-potentials and
                               future leaders
                             • Focus on new home markets and
                               old


                             • Discovery journey based on
                               three future scenarios
                             • Collective learning




AB Volvo
AA 13200, VGHQ, ChN
                      The Volvo Way
13 2012-03-29
The green
                    (r)evolution




      Asia rules                    A multi-polar
                                       world

AB Volvo
AA 13200 VGHQ ChN
                    The Volvo Way
14
Process

 Green (r)evolution           I     C        B   U   F   S   J
                              n     h        r   S   r   w   a
                              d     i        a   A   a   e   p
 Asian development            i     n        z       n   d   a
                              a     a        i       c   e   n
 Multi-polar world                           l       e   n




 • Create and capture different keywords
 • Select most important within your scenario
 • Craft vision sentence with most important keywords
 • Relay of previous vision sentence to next team

AB Volvo
AA 13200 VGHQ ChN
                             The Volvo Way
   2010-12
Collective learning

         What we are     What we know     What we must        What we do          What we achieve
        and want to be   and understand    and can do


        Principles        Insights           Rules
                                                              Behavior                 Results
          Vision           Values            Tools

                                                             SINGLE LOOP


                                                  DOUBLE LOOP


                                            THIRD LOOP




                                                     Inspired by: Swieringa & Wierdsma, 1992 and Looop AB

AB Volvo
16
                                          The Volvo Way
     2010-12
Speak to power
                        • Frank recommendations

                        • Challenging observation

                        • Compelling conclusions

                        • Unedited and uncensored

                        • On the CEO’s desk within 24 hrs




AB Volvo
AA 13200, VGHQ, ChN
                      The Volvo Way
17 2012-03-29
Funnel for selection

              Technology       Position          Offering        Employees       Society
             Environment                        Value adds        Culture

                 Priority – unique attributes
             .             .                .                .               .



                 Secondary – important but not unique

                           .                    .            .               .
             .
                 Price of entry – hygiene or standard



             .
                 Key differentiators – most important
                          .          .                       .               .




AB Volvo
AA 13200 VGHQ ChN
                                          The Volvo Way
   2010-12
Volvo Group’s vision and mission
                      The Volvo Group's vision is to become the
                      world leader in sustainable transport
                      solutions by:
                      • creating value for customers in selected
                        segments
                      • pioneering products and services for
                        the transport and infrastructure industries
                      • driving quality, safety and environmental
                        care
                      • working with energy, passion and respect
                        for the individual.




                         New vision & mission
AB Volvo
AA 13200, VGHQ, ChN
                         The Volvo Way
19 2012-03-29
Volvo Group’s vision and mission
                      The Volvo Group's vision is to become the
                      world leader in sustainable transport
                      solutions by:
                      • creating value for customers in selected
                        segments
                      • pioneering products and services for
                        the transport and infrastructure industries
                      • driving quality, safety and environmental
                        care
                      • working with energy, passion and respect
                        for the individual.




AB Volvo
AA 13200, VGHQ, ChN
                         The Volvo Way
20 2012-03-29
Post mortem
                                      • How we reasoned
                                      • Introducing new and
                                        deleting old words
                                      • Elaborate on
                                        meaning
                                      • Most important
                                        changes




AB Volvo
AA 13200, VGHQ, ChN
                      The Volvo Way
21 2012-03-29
Business critical issues
                                                      Customers first – focused and distinctive
                                                      strategy for delivering value to targeted
                                                      customer segments
                                                      Organizational fit – egalitarian culture based
                                                      on mutual respect; designed to drive change,
                                                      innovation and execution
                                                      People alignment – developing engagement,
                                                      trust and commitment to goals, values and
                                                      strategy
                                                      Leadership - develop global leadership and
                                                      teamwork, and leverage diversity

                                                                    High performing
                                                      Learning – enhance sharing of best practices,
Michael Beer: “High Commitment, High Performance.
                                                      learning and growth
How to Build a Resilient Organization for Sustained
Advantage.”

     AB Volvo
     AA 13200, VGHQ, ChN
                                                           The Volvo Way
     22 2012-03-29
Shaping another future




AB Volvo
                The Volvo Way
23 2012-03-29
Charlie Nordblom
                      Comments, feedback and questions are
                      welcome:

                              charlie.nordblom@volvo.com



                      Twitter: @Way_finder

                      LinkedIn group:
                              Communicative Leadership




AB Volvo
AA 13200, VGHQ, ChN
                       The Volvo Way
24 2012-03-29
AB Volvo
           The Volvo Way
25

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Charlie nordblom

  • 1. The Volvo Way Building a new vision and cohesive culture Charlie Nordblom Senior Vice President Volvo Group Strategic Internal Communications AB Volvo AA 13200, VGHQ, ChN The Volvo Way 1 2012-03-29
  • 2. The challenges • Re-design corporate culture • Remove old vision and wanted position • Take “Volvo Way” approach when designing new vision & mission • Prepare transition for new CEO Charting the course AB Volvo AA 13200, VGHQ, ChN The Volvo Way 2 2012-03-29
  • 3. Recipe for success “The Volvo Way shows what we stand for and aspire to be in the future. It lays the foundation for developing the Volvo Group into the world’s leading provider of commercial transport solutions. It is a recipe for success in which we strongly believe. It expresses the culture, behaviors and values shared across the Volvo Group.” What we stand for The Volvo Way AB Volvo AA 13200, VGHQ, ChN The Volvo Way 3 2012-03-29
  • 4. Shared values “Our culture is how we work together with energy, passion and respect for the individual. It is about involvement, open dialogue and feedback. It is about teamwork, diversity, and leadership. It is how we build trust, focus on customers and drive change.” Open dialogue Way The Volvo AB Volvo AA 13200, VGHQ, ChN The Volvo Way 4 2012-03-29
  • 5. Cohesive culture “We endeavor to create a cohesive culture throughout all Volvo Group companies. This is a culture of enablement, based on global principles and shared values outlined in The Volvo Way. Active development towards realizing The Volvo Way spirit and culture is the backbone of all operations.” The Volvo Way Cohesive culture AB Volvo AA 13200, VGHQ, ChN The Volvo Way 5 2012-03-29
  • 6. Unique for Volvo Group Setting the direction “To be involved and empowered in set- ting the direction means that we take individual responsibility and ownership for decisions. This employee engagement results in a strong sense of commitment to meet agreed objectives and goals. All of us feel accountable for driving change and building the future. Only engaged employees can deliver excellence.” The Volvo Way AB Volvo AA 13200, VGHQ, ChN The Volvo Way 6 2012-03-29
  • 7. AB Volvo 950, VGHQ, ChN The Volvo Way 7 2012-03-29
  • 8. Companies get lost too AB Volvo 950, VGHQ, ChN The Volvo Way 8 2012-03-29
  • 9. ”We are responsible…” Robert Wood Johnson AB Volvo 950, VGHQ, ChN The Volvo Way 9 2012-03-29
  • 10. Clear and compelling Vision should outline: • Who are we? Why do we exist? • What do we want to become? • What is unique about our way of doing things? • Review mission statement • Validate draft wanted position Vision of the future AB Volvo AA 13200 VGHQ, ChN The Volvo Way 10 2012-03-29
  • 11. Next generation leaders • Reach out to high-potentials and future leaders • Focus on new home markets and old Future leaders AB Volvo AA 13200, VGHQ, ChN The Volvo Way 11 2012-03-29
  • 12. 156 young leaders in seven countries AB Volvo AA 13200, VGHQ, ChN The Volvo Way 12 2012-03-29
  • 13. Next generation leaders • Reach out to high-potentials and future leaders • Focus on new home markets and old • Discovery journey based on three future scenarios • Collective learning AB Volvo AA 13200, VGHQ, ChN The Volvo Way 13 2012-03-29
  • 14. The green (r)evolution Asia rules A multi-polar world AB Volvo AA 13200 VGHQ ChN The Volvo Way 14
  • 15. Process Green (r)evolution I C B U F S J n h r S r w a d i a A a e p Asian development i n z n d a a a i c e n Multi-polar world l e n • Create and capture different keywords • Select most important within your scenario • Craft vision sentence with most important keywords • Relay of previous vision sentence to next team AB Volvo AA 13200 VGHQ ChN The Volvo Way 2010-12
  • 16. Collective learning What we are What we know What we must What we do What we achieve and want to be and understand and can do Principles Insights Rules Behavior Results Vision Values Tools SINGLE LOOP DOUBLE LOOP THIRD LOOP Inspired by: Swieringa & Wierdsma, 1992 and Looop AB AB Volvo 16 The Volvo Way 2010-12
  • 17. Speak to power • Frank recommendations • Challenging observation • Compelling conclusions • Unedited and uncensored • On the CEO’s desk within 24 hrs AB Volvo AA 13200, VGHQ, ChN The Volvo Way 17 2012-03-29
  • 18. Funnel for selection Technology Position Offering Employees Society Environment Value adds Culture Priority – unique attributes . . . . . Secondary – important but not unique . . . . . Price of entry – hygiene or standard . Key differentiators – most important . . . . AB Volvo AA 13200 VGHQ ChN The Volvo Way 2010-12
  • 19. Volvo Group’s vision and mission The Volvo Group's vision is to become the world leader in sustainable transport solutions by: • creating value for customers in selected segments • pioneering products and services for the transport and infrastructure industries • driving quality, safety and environmental care • working with energy, passion and respect for the individual. New vision & mission AB Volvo AA 13200, VGHQ, ChN The Volvo Way 19 2012-03-29
  • 20. Volvo Group’s vision and mission The Volvo Group's vision is to become the world leader in sustainable transport solutions by: • creating value for customers in selected segments • pioneering products and services for the transport and infrastructure industries • driving quality, safety and environmental care • working with energy, passion and respect for the individual. AB Volvo AA 13200, VGHQ, ChN The Volvo Way 20 2012-03-29
  • 21. Post mortem • How we reasoned • Introducing new and deleting old words • Elaborate on meaning • Most important changes AB Volvo AA 13200, VGHQ, ChN The Volvo Way 21 2012-03-29
  • 22. Business critical issues Customers first – focused and distinctive strategy for delivering value to targeted customer segments Organizational fit – egalitarian culture based on mutual respect; designed to drive change, innovation and execution People alignment – developing engagement, trust and commitment to goals, values and strategy Leadership - develop global leadership and teamwork, and leverage diversity High performing Learning – enhance sharing of best practices, Michael Beer: “High Commitment, High Performance. learning and growth How to Build a Resilient Organization for Sustained Advantage.” AB Volvo AA 13200, VGHQ, ChN The Volvo Way 22 2012-03-29
  • 23. Shaping another future AB Volvo The Volvo Way 23 2012-03-29
  • 24. Charlie Nordblom Comments, feedback and questions are welcome: charlie.nordblom@volvo.com Twitter: @Way_finder LinkedIn group: Communicative Leadership AB Volvo AA 13200, VGHQ, ChN The Volvo Way 24 2012-03-29
  • 25. AB Volvo The Volvo Way 25